Becoming a Chinese Competitor

David M. Cote of Honeywell talks about China's evolution, the challenges it faces and the need to be competitive there in a Viewpoints interview with WSJ's John Bussey.

This transcript has been automatically generated and may not be 100% accurate.

I ... you ... read this is good you increase your ... what would it ... mean I wanted to the way ... I look of China raised is kind of a short-term and long-term ... phenomenon that we have to deal with ... are in a short term they have to go through a lot of turmoil a lot of economic term while they're going to ... the guy get hold of the banks the U S so we use they hadn't changed to more consumption based ... economy there's a lot of change they have to go through ... bought ... well maybe a little painful and we saw some of the painter cells in the first quarter is you can see the US so we use the unclaimed down on so borders ... of trends really fell off a cliff ... but the other day and China shown a real ability to will fall ... as a as a country ... and we're big believers we talk about this company a lot about this unusual ball with your person and organization a country half the people who will fall ... they are changing every ... year ... and next term lease changing every ... say four percent in ten years ... you've got a fifty percent change after revolution ... the need to be able to keep the ball ... they've shown an ability to to do that and I've said to ... many groups ... what people want compare China with the ... Japan's evolution ... and I don't think that's the right parallel ... and ... the way we're looking at it is that ... the way the U S looks that China is probably how a hundred fifty years ago the U K look to us ... that that's probably the better peril ... and you take a look at that time we had a lot more people ... we headed dynamism where we celebrated business and what it did for productivity and prosperity ... for people ... we are ... headed IP problems with Britain by the way we had the flu the guys who were stealing IP them ... see look at and say ok aam over the course hundred fifty years ... we became the biggest economy in the world ... I know they had a couple world wars they had to deal with it the ended the day I think the trend was the ... probably the same ... we take a look at ... the China there four times the number of people we do ... they can grow at seven percent to ... three percent for another twenty five to thirty years before they're commies the same size ... which means the GDP per capita are still lower than ours ... which is they can go for a long time growing it back under a ... now there is a chance they just totally mess it up ... because of the number of the same number of big things they have to get through it could be that ... country city you reach for some kind of territorial dispute with six percent growth ... which did not absorb enough of the employ of success and growth is still love ... that's not that yet I'd I'd say I'd I'd settle for half that right now ... he met with urbanization ... is expected today I don't think we should ever be up and coming ... for bringing him up short on any of this are thinking that they're not capable of doing I'd say if we build fifty to seven years in the future a tragedy that futuristic with our own company ... but I do think it is fifty seven years from now but could very well be the story that everybody's right ... that's why we spend a lot of time getting back your investment point ... we spend a lot of time on what we call Becoming the Chinese competitor ... the half to be able to be ... your local Chinese competitor in China ... as if you can't beat in the year due to be facing them in Western Europe or even be facing them in the US ... has given that I'd I'd say for almost every single business of period next big global competitor ... my view is more likely to come from China and so